Building Services Project Estimation

7/29/2019 Building Services Project Estimation

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GSA Public Buildings Service

P-120

project estimating

requirementsfor the public buildings service


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P-120

project estimating

requirementsfor the public buildings service

U.S. General Services Administration

Office of the Chief Architect

January 2007


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introduction iii

document organization iv

acknowledgements v

1 general requirements and principles 11 general philosophy 3

2 estimator qualification and ethics 4-5

requirementsindependent government estimate (IGE)ethicsdue diligence expectationspenalties

3 cost estimating and management practices 6-7

cost management principlesestimating formats

4 estimating requirements 8-17

generalwarm-lit shell versus tenant improvement (TI) cost estimates

contents and degree of detailcost-estimating and cost-management tools

2 prospectus-level projects product/deliverable requirements 251 preliminary planning and programming project requirements 27-28

project planning guidelevel and format requirements

2 design and construction phase cost estimating 29-46

basic concept: for all phasescost estimates and summaries

market surveycost growth reportspace-type cost analysislife-cycle cost analysesvalue-engineering studiesbudget analysisrequirements for bid submissionconstruction-award bid analysis for prospectus-level projectscost databaseconstruction modifications and claims analysisvalue engineering change proposals (VECPs)

risk managementoccupancy agreements and tenant-improvements pricing

table of contents


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3 delivery methods and deliverables 491 overview 51

requirements for estimates

2 deliverable flow-charts by delivery 54-57

a appendices 59a estimating formats 61-70

uniformat level 1-5 cost elements

masterformat cost elements (2004 version)

b estimate tracking sheets 71c uniformat project cost summary 72

d building cost analysis forms 74-75

e sample 2630/2631 forms for design and maintenance/inspection services 76-77

f acronyms/glossary of terms 78-79

list of tables1 requirements for cost estimating at each design phase 14

2 standard site and design contingency guidelines 14

3 cost estimating tasking matrix 54-57

list of figures

1 calculation of mark-ups, contingencies, and escalation 17

2 general construction cost review guide (GCCRG) 19

3 example of a PCE Project Cost Summary 204 PCE cost-estimate detail excerpt for a concept-design estimate 21

5 uniformat design-development estimate report excerpt 22

6 masterformat design-development estimate report excerpt 23

table of contents (continued)

ivproject estimating requirements P-120


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introduction

This cost-estimating and cost-management criteria document supports building constructionprograms within the Public Buildings Service (PBS) of the U.S. General Services Administration

(GSA). This document presents the technical and administrative requirements for routine cost-

estimating and cost-management tasks involved in a construction projects planning and execution

stages, and defines cost-estimating practices and standards for professional services. This

document replaces the previously issued GSA Handbook P 3440.5 and all associated versions.

The instructions and criteria in this document are applicable to programming, design, construction-

management, and other professional-services contracts that involve cost-estimating andcost-management tasks. The criteria for practices and documentation requirements apply to all

professional services activities, whether provided through contract or by in-house GSA/PBS staff.

The cost-estimating tasks addressed in this document must establish accurate project costs, ensure

that they are based on programming requirements, keep costs within authorized limits, and collect

GSA cost data to refine business practices and future cost estimates.

Since project delivery methods affect how, and to some degree when, cost-management practices

are applied, this document explains the basic requirements associated with each delivery method.

introductionv


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This document has three major chapters:

1 general requirements and principles

This chapter presents the general estimating practices and standards required for all estimating

services. It covers qualifications of estimators and estimating firms, principles of effective cost

management, different types and formats of estimates, approaches to estimating, and the

various cost-estimating and management tools available.

2 prospectus project requirements

This chapter defines the estimating service required for prospectus projects, including

deliverables in the context of planning, design, and construction stages.

3 delivery methods and deliverables

This chapter explains when the deliverables defined in Chapter 2 must be provided for the

following four delivery methods:

Traditional (Design-Bid-Build)

Design-Build Performance

Design-Build (Bridging)

Construction Manager as Constructor (CMc)

Table 3 in this chapter shows the cost-estimating tasking requirements for the delivery methods

by size and type of project.

document organization

viproject estimating requirements P-120project estimating requirements P-120

document organization


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acknowledgementsThis publication was written as a collaborative effort of the Office of the Chief Architect (OCA)

of GSAs Public Buildings Service cost experts, regional PBS cost experts, and the consulting

firm Faithful and Gould, a cost management consultant (formerly Hanscomb, Faithful and Gould).

Special thanks are due to Les Shepherd, AIA, Acting GSA Chief Architect, and David Eakin, PE,

former Chief Engineer, who provided their management support in the development and publication

of this document.

The following individuals contributed their knowledge and expertise in writing and editing this

document:

gsa national office, office of the chief architectCharles Matta, Director Center for Federal Buildings and Modernizations

Gregory Segal Center for Federal Buildings and Modernizations

Curt Smith Center for Construction Excellence and Project Management

Donald C. Cobb Center for Border Stations Programs

Steven J. McGibney Center for Federal Buildings and Modernizations

gsa regional expertsLori J. Anderson Region 1

Anna Raykis Region 2

Anthony R. DellArciprete Region 3

William H. Hunt Region 4

Stephen R. Wallace Region 5

Kevin W. Livingston Region 6

Elbert E Godwin Region 7

Faramarz M. Jafarzadeh Region 8

Frederick L. Jang Region 9Sonny Neumiller Region 10

Gene M. Ransom Region 11

consultantfaithful & gould (formerly hanscomb, faithful & gould)Tom Wiggins Senior Associate

Scott W. Cullen Vice President

viiacknowledgements


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general requirements andprinciples

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1general philosophyThe Federal Acquisition Regulation (FAR) 36.203 requires that every Government estimate be

prepared as though the Government were competing for the award. Therefore, all costs that a

prudent and experienced contractor would incur must be included in project cost estimates.

A listing of known facts, construction tasks, and supplemental judgments form the basis of the

estimate at each stage of design. This provides a realistic approach to estimating, and it creates a

history of project cost development.

P100, Facilities Standards for the Public Buildings Service, lists the estimating deliverablerequirements for each design phase, but they are clarified here.

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estimator qualification and ethics

1 requirements

Capital project estimate submissions must be prepared by professional cost estimators

unaffiliated with the design team or the Construction Manager as Contractor (CMc). Certification

as a cost engineer by the Association for the Advancement of Cost Engineering (AACE), or as a

certified professional estimator by the American Society of Professional Estimators (ASPE), is

supporting evidence of an estimators qualifications, although it is not required.

2 independent government estimate (IGE)The FAR requires that an IGE be prepared for all contracts exceeding $100,000. When life-cycle

costing or other economic analyses are required to support a design decision, professional

estimators must establish construction cost estimates for all options if any one of them is

expected to have a first cost in excess of $100,000.

The final cost estimate submitted for the 100% construction documents phase is used as the basis

for the final IGE, which the contracting officer uses to determine whether an offerors proposedprice is fair and reasonable and reflects an understanding of the project requirements.

A qualified Government employee whose major responsibility is creating or approving cost

estimates for GSA must sign and approve the IGE, which serves as the basis for commitment of

funds before the solicitation is issued

3 ethics

The standards of practice described in the Canons of Ethics published by the AACE and theASPE, and available on both their Web sites, apply to all estimating services.

4 due diligence expectations

GSA expects proper diligence in the preparation of estimates, which will grow steadily more

accurate as the design progresses. While the estimator may need to make many assumptions

in preparing the concept design estimate, once the construction documents phase has begun,

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1estimates will no longer contain major assumptions. The project team will designate one

person to compare successive project estimates and prepare an orderly and comprehensive

reconciliation.

The architect-engineer (A-E) must work closely with GSAs independent estimator to coordinate

the estimates with design submissions and the scope of work, to review assumptions

concerning exclusions and inclusions, and generally to ensure that the estimate reflects GSAs

intent. These estimators must have a thorough understanding of the marketplace in which the

project is located, research market prices, and obtain price quotes for specialty items.

5 penaltiesGSA contractors are advised to be aware of 18 United States Code 1001, which deals with the

False Statements Act. This code states, in part:

whoever, in any matter within the jurisdiction of the executive, legislative, or judicial

branch of the Government of the United States, knowingly and willfully -

(1) falsifies, conceals, or covers up by any trick, scheme, or device a material fact;

(2) makes any materially false, fictitious, or fraudulent statement or representation; or

(3) makes or uses any false writing or document knowing the same to contain any materially

false, fictitious, or fraudulent statement or entry;

shall be fined under this title, imprisoned not more than 5 years or, if the offense involves

international or domestic terrorism (as defined in section 2331), imprisoned not more than

8 years, or both.

general requirements and principles

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cost estimating and management

practices1 cost management principles

design within budget

Unless otherwise specified in design-contract documents, the A-E must design the project

so that construction costs will not exceed the funding limitations established as the Basis

of Fee Negotiation. FAR 36.609-1 requires that the A-E redesign the project at the firmsown expense to ensure that a responsive construction bid amount will be within funding

limitations.

prospectus authorization/appropriation

In accordance with the Public Buildings Act of 1959 (PL 86-249), as amended, the United

States Congress must authorize the scope and budget of each major capital construction

project before design begins. Once Congress has approved a projects construction

budget, it cannot be increased, so the design team must approach prospectus funding asan absolute limit.

pursuit of construction services

Construction bids may be solicited only if the Estimated Cost of Construction at Award

(ECCA) amount at final construction documents is within congressionally authorized

prospectus limits.

itemized cost management

When project funds are secured from different agencies or are provided as a dedicated

allowance for a specific program goal, independent estimates must be made for each,

allowing separate tracking of expenditures. Funding allocated for such projects is tracked

to confirm that expenditures are apportioned according to amounts authorized by each

agency, so as not to exceed the dedicated allowance.

independent estimates

The Government requires third-party estimators for major construction projects to verify

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1that the projects scope and cost are within budget. These estimates are prepared by an

independent cost estimator who is not affiliated with the design firm or the Construction

Manager as Contractor (CMc). The design team provides all required documentation forthe estimator to provide estimates for, at a minimum, the following phases:

Final Concept Design

Final Design Development

90% Construction Documents

100% Construction Documents

2 estimating formatsUsing standard estimating formats for cost estimating and cost management:

Ensures a uniform cost-control framework throughout the various stages of project

development.

Defines a proper level of detail to set expectations for the estimating effort.

Serves as a checklist to ensure complete coverage of project scope.

Provides for a standardized historical database or library.

space type estimates

This format, used primarily for new construction projects, applies space-type unit costs to

planned space needs, resulting in a set of space-related construction costs. These costs

may be adjusted by adding known costs for special requirements defined through other

estimating formats. The sum of space-type costs and special-requirement costs equals an

Estimated Construction Cost (ECC) for the project.

Since GSAs General Construction Cost Review Guide (GCCRG) uses space-type estimates,cost estimators must be familiar with this technique (see Chapter 1, Section 4.4 for an

explanation of GCCRG).

uniformat estimates

Uniformat estimating applies unit-cost data to building-system and component site elements.

This systems approach uses a hierarchical structure of cost elements, beginning at Level

1 with basic systems, such as Substructure, Exterior Enclosure, and Interior Construction,


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and proceeding to successively more detailed subdivisions of these systems at Levels 2-5.

The resulting levels of detail not only serve to structure cost information but also facilitate

estimates to whatever level of detail the design team can provide as the project is developedthrough the design submission phases. For example, by the final concept design phase,

the design team and estimator may have Level 4 information on Substructure, but only

Level 2 detail for Interior Construction.

Although the construction industry uses several variations on the Uniformat concept,

GSA requires that cost estimators use its particular version, for consistency in use and

maintenance of GSAs cost databases. GSAs Uniformat estimating format is illustrated in

Appendix A: Estimating Formats.masterformat estimates

MasterFormat, a product of the Construction Specifications Institute (CSI), is the most

widely used standard for organizing building-project specifications and detailed cost-

estimating data in the U.S. It is used particularly when drawings and specifications are

sufficiently detailed to allow material and equipment quantity takeoffs, and it is typically

aligned with a general contractors approach to preparing a bid. Visit the Construction

Specifications Institute Web site (www.csinet.org) for more information.work-item estimates

GSA Repair and Alterations (R&A) projects tend to utilize scope descriptions and cost

estimates organized by work items. While work items may vary significantly depending on

the nature of the project, as defined by GSA program offices and client requirements, the

following list reflects a typical, but not comprehensive, work-item classification for R&A

projects:

Building exterior Electrical Building interior Life safety

Accessibility Elevators

Structural Hazardous materials abatement

Mechanical Roofing

Plumbing Security

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1Traditionally, R&A projects have used the work-item basis because it allows the removal

or addition of project scope to meet budgetary limitations and allowances. GSA assigns

alphabetical codes to the work items when describing the project and its costs for each R&Aprospectus, as required by the Office of Management and Budget (OMB) and Congress.

See Chapter 2 for further description of non-prospectus projects.

other formats

GSA may require that estimates be formatted in additional ways. For instance, it may be

necessary to subdivide estimates for individual buildings and other components into new

construction and major renovation.

Work items on non-prospectus projects frequently evolve from Building Evaluation Reports

(BERs), and estimates for these projects may follow a Work Breakdown Structure (WBS).

Situations that might require a WBS include:

Differing financial commitments of multiple tenants of a project, requiring separate

contracts for each tenants work.

The need for separate contracts for buildings and their site work, such as at border

stations.

Phased renovation projects requiring swing space for a variety of tenants ordepartments.

Projects to be funded over more than one year.

Separation of a project into base-contract work and options or alternates.

Projects below $100,000 may be executed under line-item or job-order contracts, for which

cost estimates are derived from line-item databases. Cost proposals for the services of the

A-Es estimator and the independent government estimator must be submitted to GSA on

Form 2630/2631, shown in Appendix E.


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1estimating requirements

1 general

The Government requires cost estimates for, at a minimum, the following phases of design

Establishing an initial project baseline.

Preliminary concept design, with multiple schemes of design

Final concept design preceding value engineering

Final concept design Design development preceding value engineering

Final design development

75% construction documents



The estimate must include all elements of the proposed project work (including all design-contract modifications), regardless of the design phase. The estimate must all include

verification and continuity of cost budgets in the transfer from estimate to the contractors

schedule of values. Where costs are included for details not indicated on the drawings and

specifications, the independent government estimator must include design assumptions to

complete the scope. The estimator must check all cost-estimate calculations for accuracy and

completeness, including assessing whether estimates completely and accurately represent

design features and quantities.

Lump-sum pricing is not acceptable without description and quantification.

2 warm-lit shell vs. tenant-improvement (TI) cost estimates

GSAs pricing policy calls for a separate tenant-improvement breakdown of all tenant-space

fitout, identified by agency. You can find GSAs pricing policy and the related modifications and

clarifications at the following external Web site: http://www.gsa.gov/rentpricingpolicy

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For further inquiries, contact Beth Lemanski, David C. Baker, or Kelly Juarez of PBS Real

Property Asset Management.

The agency housing and supporting floor plans must be used to organize the estimate detail by:

Warm-lit shell

Tenant-agency fitout

Security upgrades

3 contents and degree of detail

Table 1 illustrates the formats and minimum level of detail required for cost estimates at each

design phase.

unit pricing

Unit-price cost estimates are based on detailed design documents and developed by

adding up the direct costs of materials and supplies, labor, and construction equipment

for each individual task of construction work. The basis for these unit costs must be well

documented and included in the supporting data of the estimate. To these direct costs are

added applicable indirect costs, such as overhead and profit at a subcontractor level, to

reflect the in-place construction cost per unit of work required.

For concept design estimates, it is acceptable to use unit prices combining labor, materials,

and equipment costs in a single figure. For estimates prepared at the design development

and construction documents phases, GSA requires separate labor, material, and equipment

unit pricing.

Items that are a significant percentage of the total projects cost require the greatest

estimating effort. For such items, indirect costs and other markups associated with eachtask or work item must be separately identified and considered. On a project-by-project

basis GSA requires quotes from suppliers or specialty contractors to document the costs of

such major items, and the estimator must be prepared to discuss them with GSA.

Documentation of unit-price data for smaller items could include price quotes, audits,

catalog cuts, and historical costs to clarify price bases and assumptions made when other

information is not available. The independent government estimator provides a general


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1statement describing the sources of unit costs and quantities used for each cost division or

category, but individual source references for each itemized cost element are not required.

general conditions and profit

Feasibility Studies, Program Development Studies, and Concept Design

A percentage allowancean overall percentage allowance for the General Contractors

general conditions, bonds, insurance, and corporate overhead and profitis appropriate

if the project involves no unusual coordination, site preparation, or specialized support

services.

Design Development and Construction Documents

It is appropriate to estimate these costs with two breakdowns:

General Conditions: Comprised of itemized general requirements and job-site

supervision.

Mark-Ups: Comprised of general and administrative costs (including state and

local taxes), profit, bonds, and insurance.

site and design contingencies

Contingencies are an integral part of the total estimated costs of a project and cover

costs that may result from incomplete design, unforeseen and unpredictable conditions,

or uncertainties concerning project scope. The amount of the contingency will depend

on the status of design, procurement, and construction, as well as the complexity and

uncertainties of the component parts of the project. Contingency is not to be used to avoid

making an accurate assessment of expected cost. GSA may choose to set aside separate

contingencies for major schedule changes, unknown design factors, unanticipated

regulatory standards or changes, additions to project scope, force majeure situations, or

congressional budget cuts.

Contingencies must always be separately identified so that the magnitude of a contin-

gencys impact is clear. For example, the Independent Government Estimator may never

add contingency by concealing it within unit pricing or quantity estimates or takeoffs.

Site and design contingencies start at 10% during the programming and planning stages

and are reduced to zero as the design develops (seeTable 2).


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table 2. guidelines for standard site and design contingencies

table 1. requirements for cost estimating at each design phase

Project Phase Estimate WBS Detail Level Summary Level Estimate Basis TI/Shell

Concept Design GSA Uniformat III IIParameter andQuantification

Yes

Design

Development

GSA Uniformat IV; Note 5 III Quantificationand Parameter

YesCSI Master format Note 1 & 5 Note 1

75% CDGSA Uniformat N/A III

Quantification YesCSI Master format Note 2 & 5 Note 3





Note 1. If the detailed drawings and outline specifications are available, provide the CSI Masterformatcost estimate at the greatest detail that the drawings and specifications will support.

Note 2. The level of detail of the cost estimate in CSI Masterformat corresponds to Uniformat Level IV, asdefined in this document.

Note 3. The summary of the cost estimate in CSI Masterformat corresponds to Uniformat Level III, asdefined in this document.

Note 4. The level of detail of the cost estimate in CSI Masterformat corresponds to Uniformat Level V, asdefined in this document.

Note 5. Unit prices are broken down into labor, materials, and equipment.

ESTIMATE CATEGORY %

Program/Planning 10%

Concept Design 7%10%

Design Development 5%7.5%

Intermediate Construction Documents 2-5%

Final Construction Documents 0%


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1escalation

Escalation is the anticipated increase in the projects Escalation is the anticipated increase

in the projects cost due to inflation between the time the estimate is prepared and when theproject is finished, since inflation continues during project construction. For simplicity, the

estimator must assume that half of the work will occur before the midpoint of construction

and half after. Therefore, the estimate is escalated to the midpoint of construction to reflect

the contractors provision for inflation in its bid.

In the planning stage, escalation rates are taken from the GCCRG. As the design progresses,

the A-E and GSA must agree on an annual construction-cost escalation compounding rate,

based on a market survey prepared by the A-E, for use in all design estimates and cost

analyses. It is the responsibility of the design A-E to control the cost of the project so thatwhen the ECCA budget is reduced by the forecasted escalation rate, the residual budget

amount equals the current value of the project.

art-in-architecture

The art-in-architecture set aside amount is 0.5% of ECCA.

construction contingency

The construction contingency is an allowance for cost growth that may occur during

construction as a result of unexpected circumstances or incomplete design documents.

GSA currently recommends 7% for new construction projects and 10% for renovations, but

may direct the use of different figures on a project-by-project basis.

applying markups, contingency and escalation

Figure 1 demonstrates how mark-ups, contingencies, and escalation should be calculated

and applied to projects.

reviewing and reconciling estimatesOn projects for which GSA requires the preparation of an IGE, the A-E is responsible for

designating a member of its team to reconcile the IGE with its own estimate in an orderly and

comprehensive manner.

cost-management requirements

Accurate estimating is an important component of GSAs cost-management process, as

well as an important decision-making tool for the design team in its selection of systems


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and materials. In order to serve these purposes, careful consideration must be given to the

following:

Cost-element comparisons Prepared at each milestone to compare the currentestimate to the previous milestone estimate and to the overall budget and to the

baseline estimate to ascertain whether design or scope changes have been made

or need to be made. Refer to the estimate tracking sheets in Appendix B.

Earned-value accounting Used in conjunction with cost-element comparisons,

the earned-value process allocates cost as it is committed, or as a part of the project

is completed. Decisions regarding contingency and escalation are important in this

process. For additional information, see the Whole Building Design Guide web site

at www.wbdg.org.

Life-cycle cost analysis Used to evaluate the implications of decisions made

during the design process not only on initial cost but also on life-cycle costs. Issues

considered typically include energy utilization, sustainability, maintenance, and

operations. See Chapter 2, Section 2.2 for details.

Shell and core, security upgrades, and tenant improvement (fitout) GSA

requires subdividing the estimate into costs for the shell and core and tenant

improvements, including the associated professional services costs included in the

occupancy agreement between tenants and GSA. Both the A-Es estimator and the

independent government estimator must submit their cost proposals for professionalservices to GSA using Forms 2630 and 2631. See Appendix E for sample forms.

Phasing/scheduling packages Used for project work divided into more than one

construction phase. Separate cost estimates, accompanied by an overall project

ECCA summary, support each phase. For phased new construction, a construction

management (CM) firm hired by GSA must prepare a post-award construction

cost analysis for each phase. After contract award of the last construction phase,

a combined post-award construction analysis for the composite project bid is

prepared.

Multistructure projects Projects involving more than one structure require

separate estimates for each structure. Separate site construction-cost estimates

must be associated with the estimates for each structure involved. A CM firm hired

by GSA must prepare a construction-cost analyses for each structure and site

development after the multistructure project is awarded.

Bid alternates and options A CM firm hired by GSA must prepare separate cost

estimates for the base bid and for each individual alternate or option when the

project requires them.


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1figure 1. calculation of mark-ups, contingencies, and escalation


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benchmarking

Benchmarking may be required to assess and verify the cost of a project by reference

to established costs for similar facilities. GSA has access to a number of tools useful toestimators involved in benchmarking.

4 cost-estimating and cost-management tools

gsa cost estimating tools and spreadsheets

GCCRG

GSA developed the General Construction Cost Review Guide (GCCRG) to assist estimating in

the planning phase of new construction projects. Figure 2 is an example of a GCCRG estimate.

Project Cost Estimate (PCE)

The PCE was designed for programming and pre-design estimates. Applications may

include BERs, feasibility and program development studies, site acquisition and Market

Survey studies, and design. Figure 3 is an example of a PCE tool summary, Figure 4 is an

excerpt of a more detailed estimate sheet.

Building Life-Cycle Cost (BLCC) and Life-Cycle Cost (LCC) Spreadsheets

See Chapter 2, Section 2.2 for details.

cost-estimating systems

GSA encourages but does not require the use of computer-based cost-estimating programs

to mitigate manual calculation errors and facilitate changes. The requirements defined

in this document can be easily met by using various commercially available computer

software programs and spreadsheets. Generic spreadsheets allow user adaptation and

offer flexibility in applying different cost databases.

Figure 5 is an excerpt from a Uniformat-structured estimate report from a cost-estimatingsystem used at the design development phase. It illustrates the requirement to break down

unit prices into labor, materials, and equipment. The report uses the Uniformat levels to

organize the estimate and define the detail of the unit price items.

Figure 6 is an excerpt from a MasterFormat-structured estimate report developed at the

design development phase. It illustrates the requirement to break down unit prices into

labor, materials, and equipment.


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1figure 2. general construction cost review guide (GCCRG)


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figure 3. example of a project cost summary


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1figure 4. PCE cost-estimate detail excerpt for a concept-design estimate


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figure 5. uniformat design-development estimate report excerpt


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1figure 6. CSI masterformat design-development estimate report excerpt


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prospectus-level projects

product/deliverablerequirements

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2preliminary planning and programming

project requirementsThis chapter deals with GSAs requirements for cost estimating during the design and construction

phases of a project. It defines and describes the scope and level of detail required for each potential

deliverable and product required, in the context of each phase of the project. For information on

the feasibility study and program development study (PDS) phases of a capital project, see GSAs

Project Planning Guide, available in PDF format at www.gsa.gov, which is briefly described below.

1 project planning guide

GSA developed the Project Planning Guide to assist participants in the Capital Program

development process in evaluating, developing, and implementing Federal facilities projects.

The guide outlines the project delivery process and offers some keys to success.

The guide is divided into five sections and several appendices:

Overview of GSAs Capital Program Outlines GSAs basic capital program

development-planning process and the fundamental roles of the feasibility study andthe program development study.

Whats Important and When Discusses GSAs primary business and program goals

as presented in the feasibility study and the PDS.

Pre-Planning Phase Describes the role played by GSAs daily management of facility

requirements, customer needs, and portfolio planning in the project development

process.

Feasibility Study Phase Outlines the process for beginning, conducting, andcompleting a feasibility study, a process that ends with the submission of the

prospectus package for site and design funding. This section describes the process,

deliverables, and keys to successful development of a sound project and site/design-

funding request.

Program Development Study (PDS) Phase Outlines the process for evaluating

the feasibility study as the foundation for the PDS, digesting new information, refining

the project, and directing the projects design and construction strategy. This section

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discusses the process, deliverables, and keys to successfully supporting a sound

design start and construction-funding request.

Appendices Include process checklists, a glossary, worksheets on team roles, and

resources for more information.

2 level and format requirements

Refer to the concept design phase estimating requirements in Table 1, Chapter 1 for the type

of estimate required at the preliminary and planning phases.

See Section 2.2 of this chapter for a discussion of Market Surveys required during the

Planning phase.


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2design and construction phase cost

estimating1 basic concept: for all phases

Any design-submission deliverables may include, but are not limited to:

cost estimates and reports

market survey

cost growth reports

space-type cost analysis

life-cycle cost analysis

value engineering studies

independent estimate reviews

budget analysis

construction award bid analysis

database information preparation

construction modifications & claims analysis

value engineering change proposals analysis (VECPS)

risk analysis reports

The purpose is to establish a cost management system that tracks budgets established based

on the prospectus in a Uniformat Level II, comparing cost growth and cost modificationsfor all Uniformat Level II elements through design, procurement, construction and project

completion.

As a general rule, early in the process Uniformat is the primary estimate format, although CSI

MasterFormat may be selected on a project-by-project basis. GSA usually requires work items

on major renovation projects or when the project is to be separated into major components or

subbuildings. The space-type summary is usually required at various project phases. A Cost

2

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Growth Report is required at all submissions, and a Life-Cycle Cost Analysis is required through

design development and potentially during construction documents phases for significant

items.

An independent party hired by GSA conducts a value engineering (VE) workshop, and VE is

provided in accordance with the design submissions requirements of P100. GSA may elect to

conduct an additional VE study at the construction documents phase on a project-by-project

basis.

When GSA completes an internal review of the estimate, or reconciles an independent estimate,

and at the conclusion of the VE study, a final estimate is submitted.

2 cost estimates and summaries

summary of format requirements

Table 1 in Chapter 1 displays the type of estimate to be prepared at the various design stages.

preliminary concepts

Pre-concept estimating generally requires the preparation of estimates on three competing

basic schemes/concepts, allowing GSA to select its preferred scheme.

For each scheme, the A-Es estimator prepares separate estimates for phased work,

multistructures, and or bid alternates/options. The A-E also submits estimates for concept

design analyses/studies as specified in design-programming directives and/or design-

criteria references, and a comparison sheet for multiple concepts/schemes.

concept design

These estimating requirements apply to any concept-level submission. If a projects design

requires multiple concept submissions, each concept submission must be supported bythe estimates described here.

Estimators must calculate quantities for appropriate systems or apply parameters to

appropriate building areas. Applied unit costs may be based on combined material and

labor costs. Concept estimates must match the estimate format of the budget estimate

to facilitate cost-breakdown comparisons. For prospectus work, this typically requires that

Uniformat Level 3 estimates be prepared, delineating cost-element categories shown in


section 2.2

2


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2Appendix A.1: Uniformat Level 1-5 Cost Elements. However, certain projects (such as nonpro-

spectus repair and alteration work) may have had their budgetary estimates done in work

items or CSI MasterFormat.

Backup worksheets must support detailed estimates, covering all cost-sensitive project

data and defining all major assumptions made. Backup estimating data and quantity-

survey information may be in any format, grouped under appropriate format classification

headings.

The A-E is required to provide the Independent Government Estimator advance copies of

all concept plans and documentation early enough to allow for the preparation of required

estimates as part of the concept design submission. Advance documents must include

floor plans, elevations, sections, and perspective views in sufficient detail to allow a realistic

parametric cost assessment. In addition, the A-E provides:

A statement on the conceptual approach and general features for each major

building system, including an itemized listing of anticipated types and approximate

capacities/sizes. Block loads for structural, mechanical, and electrical systems.

Quality levels of major materials and systems to be used, including any special

design programming or code requirements relating to fire protection, HVAC,

plumbing, electrical, and structural components. A copy of the design program to ensure that the estimator understands goals,

objectives, and design directives that may not yet be reflected in concept design

submission documents.

To ensure that the project is developing on-budget, the A-Es estimator must also submit a

list of cost-saving items that collectively would reduce the projects cost to approximately

10 percent below budget.

The Independent Government Estimator is required to prepare an ECCA summary sheet to

Uniformat Level 2, representing all project and estimate data. Each ECCA summary must

compare the design cost breakdown with any budget cost values escalated to the midpoint of

construction, including per-square-meter or square-foot calculations of overall project cost.

design development

To support design development estimating, the A-E provides the Independent Government

Estimator the documentation necessary to describe proposed types, quality, and quantities


section 2.2


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of building features, systems, equipment, and materials. Project scheduling must allow for

the early delivery of advance copies so that the required estimates can be included with the

design development submissions.

As a separate cost-saving task, the A-Es estimator must also submit a list of cost-saving

items that collectively would reduce the projects cost to at least 10 percent below budget.

The independent government estimator prepares an ECCA estimate for the base bid and

separate estimates for phased work, multistructures, and/or bid alternates or options. An overall

project ECCA estimate will also be prepared, incorporating all project segments, for analyses

or studies specified in design-programming directives and design-criteria references.

Backup worksheets are required to support the detailed estimates, which represent allcost-sensitive project data and define all major assumptions. Backup estimating data and

quantity-survey information may be in any format, but must be grouped under appropriate

format classification headings. The Estimate Tracking Sheet and Elemental Cost Summary

forms must be submitted, including per-square-meter or square-foot calculations.

construction documents

Estimating requirements given here apply to all required construction documents

submissions75%, 90%, and 100% CDsunless specified as applicable only to finalconstruction documents.

If the overall projects construction documents estimate exceeds the budget, the A-E is

again required to propose cost-saving measures to bring the project within budget, at its

own expense. To avoid over-budget construction bids, the A-Es estimator must identify at

least five construction cost-saving items, formulated as bid alternates, to bring the projects

estimate at least 10 percent below budget.

The Independent Government Estimator prepares an ECCA estimate for the base bid,including separate estimates for phased work, multistructures, and/or bid alternates or

options with any addenda. An overall project ECCA estimate is also prepared, incorpo-

rating all project segments, for analyses or studies, as specified in design-programming

directives and design-criteria references.

ECCA estimates are developed using MasterFormat, with detailed material and labor

breakdown and appropriate subdivisions as shown in Appendix A. MasterFormat estimates


section 2.2

2


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2are also summarized in Uniformat Level 3 estimates and work items. For both formats,

backup worksheet estimates are arranged by cost categories, with a summary sheet

combining all category costs. The 90% and 100% Construction Document estimates are

prepared at the same level as required for the contractor performing the construction work,

in accordance with the FAR.

Backup worksheets are required to support the detailed estimates, which represent all

cost-sensitive project data and define all major assumptions. Backup estimating data and

quantity-survey information may be in any format, but must be grouped under appropriate

format classification headings.

Submissions must follow the formats in Appendix A and provide per-square-meter or

square-foot calculations.

MasterFormat cost estimates are prepared to an equivalent of Uniformat Level 5, with unit

prices separately representing material and labor. Cost-element lump-sum estimating for

either format system may be used only by permission of GSA. If cost elements are transferred

from previous submission levels, quantity values must be verified and unit costs adjusted to

reflect escalation to the construction documents submission date. Allowances for design

contingencies, general conditions and profit, bonds, and construction escalation are added

to calculate the ECCA amount.

3 market survey

GSA requires that the design A-E prepare a Market Survey for every project and for each

submission indicated in the Tasking Matrix (Table 3 in Chapter 3), and described below.

A Market Survey explores all factors influencing construction costs relevant to the current

stage of design. The Market Survey preparer gathers pertinent data by interviewing local firmshaving knowledge of construction in the area. Possible sources include, but are not limited

to, general contractors and subcontractors, builders associations, local government officials,

architectural and engineering firms, builders-exchange and construction-reporting firms, and

bankers and commercial mortgage firms. Particular emphasis must be placed on ascertaining

the availability of mechanical and electrical subcontractors and the associated skilled labor

trades. The Market Survey must reflect recent and expected bidding conditions that may

influence the cost of construction and list all sources of data.


section 2.2


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The person who prepares the Market Survey visits the site and local market areas to determine

the following:

Availability and shipping origin of major project materials. Capability of local fabricators, precast yards, concrete plants, etc.

Availability of labor crafts necessary for the project, especially skilled labor.

Availability of special erection equipment.

Anticipated capacity of local contractors during bidding period.

Special conditions that might influence bidding.

Local escalation experience.

Site accessibility.

Batch plant options for concrete and asphalt.

Applicable local taxes or gross receipts taxes where the project will be constructed.

Costs of remoteness, such as labor for lost time, housing allowance, or requirement for

onsite housing or material delivery costs.

The Market Survey also includes:

Who was contacted (person, firm, phone, e-mail).

Where they are located.

When contact was made.

Why they were contacted.

What information was obtained.

A summary assessment with specific recommendations.

concept design

The A-E conducts a Market Survey as described above and as required by the Tasking

Matrix (Table 3 in Chapter 3).

design development

During the design development phase, the concept design phase Market Survey is

updated, verified, and refined to include all changes necessary to reflect new information


section 2.2

2


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2on local market conditions, such as regional building booms and other potential major

projects with comparable construction schedules. These updated Market Surveys are

submitted as required by the Tasking Matrix (Table 3 in Chapter 3).


At the 90% and 100% construction documents phases, the survey process intensifies, and all

data gathered is reported. The report clearly depicts the likely bidding market, other projects

likely to be on the market, and how hungry the market is likely to be at the scheduled time

of bid. The final estimate must incorporate the surveys conclusions and reflect the current

bidding climate, including information on the expected number of bidders for general and

subcontractors, the amount of competition among contractors, and other conditions that

may have an impact on the construction project.

Note that in this phase the projects construction manager as agent will be promoting the

project within the construction industry to develop interest for good competition.


section 2.2


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4 cost growth report

GSA uses the Cost Growth Report (CGR) to track cost growth at each design phase by

comparison with the project budget. This is done by comparing the prior submissions Uniformat

Level 2 costs for each cost element with the current submissions Level 2 costs, and identifying

the cause of large variances. The A-Es estimator prepares this report for each design-phase

submission, using GSA Form 3474, Project Cost Comparison Summary. See Appendix B: Estimate

Tracking Sheets for a sample of the form.

preliminary concept design

Each design concept considered during this submission must be within the projects overall

construction budget. The A-E will be required to redesign any concept design scheme not

within the budget to bring it within budget constraints at its own expense.

For each concept scheme, the A-Es estimator lists cost-saving ideas that collectively will

bring project costs within budget. The Independent Government Estimator validates these

cost-saving measures by preparing an order of magnitude estimate of savings for each of the

A-Es proposed measures. The A-E submits its Cost Growth Report on GSA Form 3474.

final concept design, design development, and construction documents

If the estimates for the concept design and design development submissions exceed the

project budget, the A-E is required, at its own expense, to propose cost-saving measures

to bring the project within budget. Just as described above for the preliminary concept

designs CGR, the A-E summarizes the final concept design estimate on GSA Form 3474

and compares it to the project budget. This report is supported with cost estimates for each

proposed cost-saving item. The independent government estimator validates these cost-

saving measures as outlined in the paragraph above for the preliminary concept design

phase.

If the estimate for 90% construction documents exceeds the project budget, the A-E is

required to propose cost reductions in the form of bid alternates sufficient to ensure receipt

of bids within budget on the scheduled bid date. The Independent Government Estimator

validates these cost-saving measures, as indicated in the paragraph above, for the concept

design and design development submissions.


section 2.2

2


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25 space-type cost analysis

As part of a new construction-project cost-estimate submission, the Independent Government

Estimator estimates construction costs by space types by:

Identifying all project space types, considering at least those categories listed in the

GCCRG.

Separately itemizing special costs outside normal requirements of listed space types,

addressing at least those listed in the Appendix as Special Costs Excluded.

6 life-cycle cost analysis

Life-cycle costing (LCC) is the development of all significant costs of acquiring, owning, and

using an item, system, or service over a specified length of time. The time period used is the

projected effective useful life of the facility, and its determination includes consideration of

functional obsolescence of major components or systems. It is used to compare and evaluate

the total costs of competing solutions based on the anticipated life of the facility or product to

be acquired.

The value of an item includes not only consideration of the costs of acquiring it, but also the

costs of using it or the cost of performance for as long as the user needs it. Costs of repairs,

operations, preventive maintenance, logistic support utilities, depreciation, and replacement,

in addition to capital cost, all contribute to the total cost of a product to a user.

For further guidance refer to Facilities Standards for the Public Buildings Service (PBS P100)

and GSA Value Engineering Guide (PBS-PQ250 and 251).

7 value engineering studies

Value engineering (VE) is conducted during the concept design and design development phases

to explore cost saving/value-enhancing options before selecting final design features. GSA may

conduct additional studies during the 75% and 90% construction documents phases, and for

100% construction documents if deemed necessary due to technical or budgetary constraints.

A single study may be appropriate on smaller, less complex projects. The basic approach is to

consider macro level issues at concept design and more micro level issues at design development.


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In general, decisions made as a result of the first study will not be reconsidered in the second

study unless significant new information is available. Furthermore, design changes implemented

as a result of the studies will generally be considered within the bounds of the normal design

process. Exceptions to this will be considered on a case-by-case basis.

baseline prospectus

Translate the approved prospectus line items into Uniformat Level II to be used as a basis

of comparison and control throughout the project lifecycle.

design concept

For major capital construction and certain other projects, a VE study will be included as a

requirement for the concept design submissions. GSA contracts with the VE consultantdirectly, rather than through the A-E, but the A-E participates in and reviews VE proposals

to address project feasibility and adherence to design programming requirements. The

A-Es cost estimator must be available to answer the VE consultants questions concerning

the origin of A-E concept design estimate unit costs and interpretation of work-element

descriptions. Once GSA determines what VE consultants recommendations are to be

used, the design A-E must incorporate these recommendations into design documents as

part of the scope of work.

For new construction projects, the first study at concept design is intended to review basic

design decisions that pertain to areas such as:

Siting and building orientation

Building form, shape, and massing

Layout

Proportion of occupiable area to gross area

Design criteria Building systems selection options

Space program options

Building space/volume parameters

Vertical and horizontal circulation

Major mechanical-electrical-plumbing (MEP) considerations

Overall energy considerations


section 2.2

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2 Site access/egress

Overall phasing/scheduling plans

Subsoil conditions and geological data

Utility availability

design development

The second value engineering study at the design development phase focuses on more

detailed design decisions including:

Specific building system design

Specification and performance requirements

Proposed design details Layout options within overall building geometry

Specific MEP system selections

Site paving, grading, and utilities

Phasing and scheduling plans

Major constructability issues

The A-E must incorporate the VE consultants recommendations approved by GSA into the

design as part of the scope of work.

8 budget analysis

An ECCA summary is prepared at each milestone, using the formats in Appendix B, to compare

the current design-cost breakdown with the previous submissions costs or the budget, with all

values escalated to the current submission date. The summary must include allowances for

design contingencies, general conditions and profit, and construction escalation and yield an

overall project cost per square meter or square foot.

9 requirements for bid submission

Procurement officials ensure that the bid packages include a lump-sum bid requirement for

each bid option, alternate, and unit-pricing item.


section 2.2


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2


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210 construction-award bid analysis for prospectus-level projects

bid analysis

After the construction contract is awarded, the Independent Government Estimator

analyzes the bid cost, using all available cost data, including the contractors breakdown of

costs submitted as the payment schedule for monthly progress payments for each trade or

subcontract.

The Independent Government Estimator reviews the final cost estimate in Uniformat Level

3 and revises it to align with the actual bid price. The adjusted cost data is provided to GSA

in formats found in Appendices C and D.

After completion of the above cost analysis, the estimator uses a format similar to that

found in Appendix D to provide a synopsis of the project space plan, efficiency, scope, and

basic design parameter measures.

GSA will provide the A-E and the Independent Government Estimator the following data:

The abstract of bids received for the procurement with an indication of the award

amount and the bids offered by all contractors.

Any breakdown or verification of contractor or subcontractor prices in the course

of contract award.

The contracts approved schedule of prices to be used for progress payments.

11 cost database

GSA uses cost data collected for similar building types to develop space-type cost benchmark

tools to improve budget development for future projects. Therefore, GSAs regional project

manager provides cost estimates, reconciled estimates, bid analysis, and construction cost

reconciling back to the bid estimate to the regional cost advocate or Central Office cost-management staff to compile this data into GSAs cost database.

12 construction modifications and claims analysis

This section provides information, procedures, and guidance for estimating and processing

construction contract modifications. Contract modifications include change orders, contractor


section 2.2

l f l l f h h h d k


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claims, formal resolution of constructive changes, the impact on unchanged work, suspension

of work, and time extension.

An independent estimate for contract modifications requested by the Government must beprepared before the proposal request is sent to the contractor. The Independent Government

Estimator must be provided the same documents concerning the proposed modification that

the contractor will be provided, or have access to them.

The IGE prepared in response to a contractor-initiated proposal must be prepared to the same

level of detail as the contractors proposal and be based on the scope of the modification. A

copy of the contractors proposal with the costs deleted can be used.

Regulations require an IGE for any procurement of $ 25,000 or more. If the Contracting Officerdetermines it is necessary, he or she may require estimates of lesser amounts. In the case of

contract modifications, the $25,000 trigger figure is the sum of the absolute values of decreases

and increases. For example, a modification resulting in decreases of $10,000 and increases of

$16,000 would sum to the absolute value of $26,000, and an IGE would be required. Adjustments

in methods or formats for the prime purpose of escaping this requirement are prohibited.

For all negotiated procurements, including contract modifications, regulations state that award

must not be made unless:

The final IGE equals or exceeds the negotiated price, or

In the case of reductions, which must be considered separately from increases, the

negotiated credit is equal to or exceeds the final IGE, and

The correct final IGE is included in the contract file, supplemented by a complete

statement justifying the award at a cost different from the estimate, and adequate for

subsequent review.

The overall objective of a contract modification negotiation is to reach an agreement with the

contractor that is in the best interest of the Government. The lowest possible price does not

always meet this objective nor would a generous price, if that price offers more payment than

necessary to include sufficient incentive. The negotiation team strives for some intermediate

point, which is generally regarded as the lowest reasonable price the amount at the bottom of

the price range that the negotiator considers to be fair and reasonable.


section 2.2

2T i t thi i th ti t t t l t ti ll l IGE b d


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To arrive at this price the negotiator must at least partially rely upon an IGE based on a

detailed analysis of the change in requirements and existing job conditions. For the most part,

the estimate must be similar to, and take into account, those same conditions and elements

occurring in the contract, as each applies to the change order scope. In lieu of better data, the

IGE for bid evaluation may be used for assistance. The Independent Government Estimator

must understand the scope of the change and prepare an accurate quantity takeoff for each

direct item of change, using labor, material, and equipment costs and sequentially applying

appropriate overhead, profit, and bond costs. Since this formal, approved IGE is used to evaluate

the reasonableness of the contractors proposal, it must be prepared on a comparable and

realistic basis by an estimator familiar with the modification and claim processes. The estimator

must review the costs presented in the contractors proposal for accuracy, reasonableness, and

allowableness. Of those costs found allowable (see FAR 31.2), each must be further reviewed

for applicability to the requested modification.


section 2.2

The Independent Government Estimator must:


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The Independent Government Estimator must:

Review the change documents and become familiar with the requirements of the

changed work.

Determine the status of construction and how the changed work will fit into the

construction schedule.

Use methods, capabilities, and labor rates matching those of the contractor performing

the work.

Price each item at rates in effect at the time the changed work will be done.

Attempt to agree with the contractor on scope and estimate structure before preparing

the IGE.

Unless otherwise agreed, use MasterFormat with a level of detail used in the contract

documents.

Use the same level of detail the Government would use if it were competing for the

award.

Compute the net cost or credit by subtracting the total of the original work from the

total of the revised work.

Clearly and adequately describe and identify schedule-related and impact-related

costs as a separate part of each estimate.

Prepare the estimate in a timely manner.

impact cost considerations

When a modification is directed, settlement includes not only the cost and time change of

the work directly affected but also the cost and time impact on the unmodified work.

Generally the contractor first presents impact costs as part of the proposals claimed

impact costs. The Independent Government Estimator looks for offset ting costs to reduce

the impact to the Government. The contractor is required to submit documentation to

support the claimed cost, such as narrative calculations and planned rescheduling. To

determine the extent of the impact, the approved cost and resource-loaded schedule

furnished by the contractor must be developed to reflect actual construction as accurately

as possible. The modification work is superimposed on the original schedule so as to


section 2.2

2minimize delay under the given requirements GSA reviews and accepts or requests


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minimize delay under the given requirements. GSA reviews and accepts, or requests

modifications to, the revised schedule.

The Independent Government Estimator classifies each impact cost claimed as either

factual or judgmental. Factual costs are fixed and established and can be determined

directly from records, such as rental or wage rate agreements or purchase documents.

Once the item has been determined valid as a factual impact, the item cost may be directly

calculated. The amount of cost change is either stated on the certification document or can

be determined from the scheduled time change of the construction progress plan.

Examples of factual impact costs are:

Escalation of material prices. Escalation of labor wage rates.

Change in equipment rates.

Increase for extending the storage period for materials and equipment.

Increase for extending the contract for labor and subsistence.

Increase for a longer period of direct onsite overhead personnel, materials, and

utilities.

Increase for a longer period of overhead and project office services.

The Independent Government Estimator identifies judgmental impact costs, which include

those that are dependent on variable factors such as performance, efficiency, or methodology

and cannot be stated factually prior to actual accomplishment. The contractors proposal

must provide clear and credible support for all judgmental impact costs.

Examples of judgmental impact costs are:

Change of efficiency resulting from rescheduling. Loss of labor efficiency resulting from longer work hours.

Loss of efficiency caused by disruption of existing orderly processes and

procedures.

Loss of efficiency during rescheduling of manpower.

Inefficiency incurred from resubmittal of shop drawings, sample materials, etc.


section 2.2

The Independent Government Estimator weighs any premium costs allowed in the base-


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The Independent Government Estimator weighs any premium costs allowed in the base

contract change proposal against any additional impact costs requested. For example, the

Mechanical Contractors Associations productivity rates can be higher than those used in

competitively bid work. The estimator must avoid including the contractors questionable

impact costs in the initial Government estimate unless each has been deemed justifiable.

Any offsets to impact costs from deleted work may increase the contractors efficiency and

productivity, resulting in a credit to GSA.

estimators support during negotiations

After the IGE for the modification has been completed, approved, and delivered to the

Contracting Officer, the Independent Government Estimator continues to support the

negotiations, as directed by the negotiator. The estimator must become thoroughly

familiar with negotiating requirements and techniques before participating as part of a

negotiating team. He or she marks all estimates FOR OFFICIAL USE ONLY to preserve

balance during negotiations. The overall amount must not be disclosed under any circum-

stances prior to award.

13 value-engineering change proposals (VECPs)

VECPs may require preparation of an IGE. Since a VECP will be supported by contractor pricing,the estimator prepares the IGE in a manner similar to that defined previously in Construction

Modifications and Claims Analysissection (in Chapter 2.2).

14 risk management

The Independent Government Estimator assists in identifying and measuring risks, and then

in developing, selecting, implementing, and managing options for addressing those risks. The

several types of risk to be considered as part of a risk-management methodology include:

Schedule

Cost

Technical feasibility

Environmental remediation

Archaeological


section 2.2

2 Technical obsolescence


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Technical obsolescence

Dependencies between a new project and other projects

Physical events beyond direct control Market and economic events

GSA uses the Construction Industry Institutes (CII) Project Development Rating Index (PDRI)

to identify weak areas, which are in effect a risk list.

15 occupancy agreements and tenant-improvements pricing

Cost elements are organized in accordance with GSAs pricing policy, which requires a separate

tenant-improvement estimate for each tenant.

The agency housing plan and the supporting floor plans must be used to organize the estimate

detail by:

Warm-lit shell

Tenant agency fitout

Security upgrades

In addition to the ECCA the estimator must, for each tenant agency, add the GSA-related cost

elements identified in the Space Planning section of the GSA Pricing Desk Guide, (Section

3.2.10, page 19) and in the Pricing Implementation for Project Managers Guide, Chapter II

Project Development Phase.


section 2.2


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delivery methods and

deliverables

3


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3overview1


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overview

1 requirements for estimatesThe matrix of Table 3 indicates the deliverables typically required by delivery method and by

size of project.

matrix rows

The matrix rows are organized by the five distinct stages of any project Planning, Design,

Construction Procurement, Construction, and Construction Closeout. Within these are

discrete phases, and within each phase there are several activities. To perform the activities,

several tasks have to be completed, all as shown on the matrices that follows.

Planning Stage: The planning stage has four phases:

1 Preliminary project development

2 Feasibility study

3 Program development study (PDS)

4 Design-build RFP

5 Baselining

Design Stage: The Design stage has three phases:

1 Concept

2 Design development

3 Construction documents

Construction Procurement Stage: There is only one phase and one activity, but two tasks

are identified.

Construction Stage: There is only one phase here, but its two main activities are:

1 Construction modifications and claims analysis

2 Value Engineering Change Proposal (VECP)

Construction Closeout Stage: Closeout is the only phase and activity in the Construction

Closeout Stage.

1

51delivery methods and deliverables

section 3.1

matrix columns


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The matrix shows four delivery methods:

1 Traditional (Design-Bid-Build)

2 Construction Manager as Constructor

3 Design-Build with Bridging or Concept documents

4 Design-Build pure or performance-based

The matrix further organizes each delivery method by project type: New Construction, and

Repair & Alteration/Modernization.

Project sizes, defined by construction value, subdivide each project type. Project sizes are:

1 Under $2 million

2 $2 10 million

3 $10 25 million

4 $25 million and above

New Construction does not use the under $2 million project size.


section 3.1


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deliverable flow-charts by delivery2


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deliverable flow charts by delivery

table 3. cost estimating for construction in federal buildings

tasking matrixtraditional CMc

DBbridging/concepts

DBpure/perform.-based

new r&a/mod new r&a/mod new r&a/mod new r&a/mod

activity task

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M

preliminary project development

BER Work Item Cost Estimates

Blast / Prog.Collapse study

Uniformat or MasterformatCost Estimates

Seismic studyUniformat or Masterformat

Cost Estimates

NEPAUniformat or Masterformat

Cost Estimates

Master PlanUniformat or Masterformat

Cost Estimates

Special studiesUniformat or Masterformat

Cost Estimates

A-E FeeEstimate

Independent GovernmentEstimate

feasibility study

For eachdevelopmentsubmission

GCCRG/Benchmark Tools orProject Cost Estimating Tool

Project Cost Estimating Tool

Risk Analysis

For each availablepreliminary planning

study

Validate/Update AssociatedEstimate

For each incorporatedpreliminary planning

studyProject Cost Estimating Tool

A-E FeeEstimate

Independent Government CostEstimate

2


section 3.2

3tasking matri

traditional CMcDBbridging/

conceptsDBpure/

perform.-based


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program development study (pds)

Feasibility StudyCritique

Validate Feasibility StudyEstimate

For each development

submission

Project Cost Estimating Tool

GCCRG for Budget Analysis

Market surveys(one submission only)

For each availablepreliminary planning

study

Validate / Update AssociatedEstimate

For each incorporatedpreliminary planning

study

Validate / Update AssociatedEstimate

design-build RFP

Estimating SupportIndependent Government

Cost Estimate

concept design

PreliminarySubmission

Cost Estimates per Table 1 foreach submission

Uniformat or MasterformatCost Estimate

Market Survey

Review of A-E Estimate

VE wor ks hop Cost Est im ates per PQ250/251

Final Submission

Cost Estimates per Table 1

Uniformat or Masterformat CostEstimate

Independent Estimate

Space Type cost analysis

Budget Analysis

tasking matrix concepts perform. based

new r&a/mod new r&a/mod new r&a/mod new r&a/mod

activity task

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M


section 3.2

tasking matrixtraditional CMc

DBbridging/concepts

DBpure/perform.-based


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Final Submission(continued)

Life Cycle Cost Analysis(Per P-100/Design Program)

Risk Analysis

OCA Review & Estimate

design development

Pre-Value EngineeringDD Submission



Life Cycle Cost Analysis (PerP-100/Design Program)

VE Workshop/Study Cost Estimates per PQ250/251

Final DD Submission


Market Survey

Cost Growth Report

OCA Review & Estimate

Independent Estimate andreconciliation with A-E Estimate


75% CDs



Market Survey

CMc Guaranteed MaximumPrice

90% CDs


Market Survey

Independent Estimate andreconciliation with A-E

Estimate


Cost Growth Report

tasking matrixnew r&a/mod new r&a/mod new r&a/mod new r&a/mod

activity task

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M


section 3.2

3tasking matrix

traditional CMcDBbridging/

conceptsDBpure/

perform.-based


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OCA Review &Estimate

Uniformat or MasterformatCost Estimates

100% CDs


Market Survey

Independent Estimate andreconciliation with A-E

Estimate


Cost Growth Report

construction procurement

Construction AwardBid Analysis

Database Informationpreparation

Cost and Price Analysis

construction

Construction Mods &Claims Analysis

Masterformat Cost Estimates

Value Eng. ChangeProperty (VECP)

Cost Estimates

Life Cycle cost analysis review(as required)

construction closeout

CloseoutDatabase Information

including Change Orders

tasking matrixnew r&a/mod new r&a/mod new r&a/mod new r&a/mod

activity task

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M

$25M+

$1025M

$210M

$25M+

$1025M

$210M

Under2M


section 3.2


68/92


69/92

appendices

a


70/92

aestimating formats1 uniformat level 1-5 cost elements


71/92

Level 1 Level 2 Level 3 Level 4 Level 5

A1

Substructure

A11

Foundations

A111Standard

Foundations

Wall Foundations Column Foundations & Pile Caps Perimeter Drainage & Insulation

A112Special

Foundations

Pile Foundations Grade Beams Caissons Underpinning Dewatering Raft Foundations

Pressure Injected Footings Other Special Foundations

A12

BasementConstruc

tion

A121Basement

Excavation

Excavation for Basements Structure Backfill & Compact Shoring

A122Basement

Walls

Basement Wall Construction Moisture Protection Basement Wall Insulation Interior Skin

A123 Slab on Grade

Standard Slab on Grade Structural Slab on Grade

Inclined Slab on Grade Trenches Pits & Bases Under Slab Drainage & Insulation

A2

Superstructure

A21

Superstructure

A211

Floor and Column

Construction

Suspended Basement Floor Construction Upper Floors Construction Balcony Floor Construction Ramps Floor Raceway Systems Other Floor Construction

Roof

Construction

Flat Roof Construction Pitched Roof Construction

Canopies Other Roof Construction

A2

Building Services Project Estimation

Documents

Transcript of Building Services Project Estimation